Mitigating Supply Chain Risk Through Improved Confidence

Mitigating Supply Chain Risk Through Improved Confidence

2004 | Martin Christopher, Hau Lee
The article discusses the importance of improving supply chain confidence to mitigate supply chain risks. It highlights that supply chain risks come in many forms, including financial, chaos, and market risks. The lack of confidence in a supply chain can lead to inefficiencies, increased costs, and poor decision-making. The article argues that improved visibility and control are key to restoring supply chain confidence. Visibility refers to the ability to track and monitor the flow of goods and information throughout the supply chain, while control refers to the ability to manage and adjust supply chain operations. The article suggests that by improving visibility and control, supply chain managers can reduce the risk of disruptions and improve overall performance. It also discusses the concept of the "risk spiral," where a lack of confidence leads to actions that increase risk exposure. The article concludes that restoring supply chain confidence is essential for improving supply chain performance and reducing risks.The article discusses the importance of improving supply chain confidence to mitigate supply chain risks. It highlights that supply chain risks come in many forms, including financial, chaos, and market risks. The lack of confidence in a supply chain can lead to inefficiencies, increased costs, and poor decision-making. The article argues that improved visibility and control are key to restoring supply chain confidence. Visibility refers to the ability to track and monitor the flow of goods and information throughout the supply chain, while control refers to the ability to manage and adjust supply chain operations. The article suggests that by improving visibility and control, supply chain managers can reduce the risk of disruptions and improve overall performance. It also discusses the concept of the "risk spiral," where a lack of confidence leads to actions that increase risk exposure. The article concludes that restoring supply chain confidence is essential for improving supply chain performance and reducing risks.
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